WATCH: Rand surrenders gains after dollar jumps higher
JOHANNESBURG - The rand benefited from investors crowding into gold, shrugging off volatile risk sentiment ahead of the G20 trade summit according to NKC Research.
The price of the yellow metal hit a six-year high amid rising geopolitical tensions, offering a higher-yielding alternative to currencies and safe-haven fixed-income securities after both US and eurozone monetary authorities signalled last week that they are open to monetary stimulus extension. At the close of local trade, the rand quoted 0.4 percent stronger at R14.30/$, after trading in range of R14.27/$ - R14.38/$. The rand surrendered gains last night after the USD jumped higher. Expected range today R14.20/$ - R14.50/$.
South African bourse
The JSE All Share (-0.7 percent) stumbled yesterday, tracking wary Asian stock markets lower, with the US and Chinese presidents due to meet soon. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.7 percent) traded lower. In local news, Anglo American Platinum (-5.5 percent) released a trading statement for the six months ending 30 June 2019, in which it said half-year earnings are expected to rise by at least 80% thanks in part to higher metals prices.
Brent crude oil
The Brent oil price began yesterday’s session on the backfoot, weighed by concerns over future crude demand, but prices regained momentum later in the day due to Middle East tensions. At the close of local trade, benchmark Brent crude futures quoted 0.7 percent higher at $65.08pb. Crude prices extended gains during Asian trade this morning.
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